• The U.S. Federal Reserve Board raised interest rates by 25 basis points, and this initially caused a decline in the king coin’s price, however it was quickly recovered by bulls.
• According to CryptoQuant analyst BinhDang, BTC’s short-term expectation could be void of a decrease due to a crossover into a significant bullish region being close.
• Santiment reported that $416 billion worth of BTC were held off exchanges with fourteen times lower available on the latter – indicating that holders are still adhering to self-custody.
Interest Rate Hike Causes Minor Bitcoin Price Drop
The U.S. Federal Reserve Board recently raised interest rates by 25 basis points, leading to a short-lived dip in Bitcoin [BTC] prices before bulls took back control of the market situation.
SOPR Ratio Indicates Possible Buying Opportunities
CryptoQuant analyst BinhDang pointed out that the Spent Output Profit Ratio (SOPR) indicated possible buying opportunities and potential for BTC rally in the near future. The SOPR evaluates profit ratio of the entire market and is calculated by dividing Long-Term Holder (LTH) SOPR by Short-Term Holder (STH) SOPR while reflecting degree of all on-chain realized profits. Additionally, when looking at the historical view of Triple Exponential Average (TRIX), there was a chance of further bullish momentum as TRIX value was positive at the time of writing.
Fed Chairman Insists Further Hikes Needed Before Economy Can Become Disinflationary
Feds chairman Jerome Powell insisted that more hikes would be needed before economy could become disinflationary despite rising inflation concerns.
BTC Holders Prefer Self Custody Despite Profit Taking Offer
Despite January’s profit taking offer, Santiment reported that BTC holders preferred self custody over exchange storage as $416 billion worth of BTC were held outside exchanges with fourteen times lower available on them.
Conclusion
It may seem that usual expectation of falling prices amid rising interest rates may not always be case as Bitcoin [BTC] showed immense prowess after Fed board’s rate hike decision despite initial decline lasting few hours only before bulls retook control and pushed prices higher again in anticipation for further bullish momentum ahead based on SOPR ratio position closer to market bottom and TRIX signaling incoming uptrend as well as BTC holders preferring self custody despite profit taking offer suggesting possible buying opportunities ahead for traders looking for entry points into crypto markets now or later on down road depending on individual trading strategies employed when entering positions into volatile markets like cryptocurrencies remain until further notice .
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